Feature

Northern Trust Stock Could Rise 25%

The asset manager and custodian is winning market share and posting profit gains in tough conditions.

In late June, Northern Trust inked a deal to provide global custody services for Canadian energy and housing company ATCO’s more than $2 billion in pension assets. Days later, the bank won a new contract to provide administration, accounting, and custody services for Ariel Investments’ $4.1 billion in mutual fund assets.

While more than $6 billion in new assets might be a drop in the bucket to the two biggest publicly traded trust companies, State Street (ticker: STT) and Bank of New York Mellon (BK), it’s a significant...